Where to Get (Really) Free Credit Reports

In an article on Internet information brokers that I wrote for the November issue, I included a list of tips to help you prevent identity theft. One of those tips was to order a free credit report every four months at AnnualCreditReport.com. However, I've received a couple of e-mails from readers having trouble using that site. So, here are a couple added details.

(If you can't get the URL above to work, try entering the DNS address directly: http://199.38.43.130.)

As part of the Fair and Accurate Credit Transactions Act of 2003, every consumer has the right to a free credit report every year, from each of the three main credit reporting agencies (Experian, Equifax, and TransUnion). The AnnualCreditReport.com site was set up to give people access to those free reports. This site is the only place you can get free credit reports without strings attached.

The trouble is, if you don't know about this site and its exact URL, it's easy to be misled by the same credit reporting agencies who "sponsor" it. (Text on the site says it's "sponsored" by the credit reporting agencies, but it's not like they chose to do so; the service was mandated by law.) If you go directly to one of the credit reporting agencies' sites, you'll see all sorts of offers for credit products, none of which is free. And if you try to Google "Free Credit Report," a long list of sites will try to lure you into buying credit-monitoring services by giving you a free credit report.

In August, Experian got busted by the FTC to tune of $950,000 for misleading consumers with its Consumerinfo.com site, which shouts "Free! Free! Free!" in big type on its page, followed in much smaller type by "When you sign up for a free 30-day trial of CreditCheck." Of course, after the 30-day trial, it's $9.95 per month--not so free. Experian also maintains the FreeCreditReport.com site; after its free trial, it costs $12.95 per month. It seems like a classic case of turning lemons into lemonade for the agencies--they converted a cost of doing business into a new revenue stream. Granted, each of these sites now posts links to the AnnualCreditReport.com site, but it took the FTC's action to bring them in line.

Some experts recommend getting credit-monitoring service, but that makes me feel like I'm feeding the lion from the inside. Every credit report I've ever ordered has had errors; why should I have to pay the agencies to monitor the data that they take such poor care of? But I know I still have to keep an eye on my credit data, so I order one free credit report every four months, rotating among the free agencies, and I'm diligent about challenging erroneous information. Perhaps that's not often enough, but at least I don't pay these companies a dime.

If you've ordered a credit report--free or not--I'm sure yours have come back perfectly clean. No?